Allied Digital Technologies, Inc.

Allied Digital Technologies, Inc. ("ADT") was formed through a merger between Allied Digital, Inc and Vaughn Communications, and was one of the nation's largest ($200 million in revenues) independent multimedia manufacturers and providers of supply chain management services and videotape duplicating equipment. The merger was financed by bank debt and equity provided by a major private equity sponsor.

Hoped-for synergies through the merger failed to materialize, and within months the deal sponsor (i) engaged a crisis manager and (ii) engaged Gordian Group to seek to effect a sale of all or parts of ADT. The bank lenders were strongly encouraging of a sale process, particularly given that ADT was near a liquidity crisis.

Within a matter of months, Gordian Group had (i) prepared a comprehensive Confidential Information Memorandum in conjunction with management, (ii) identified and contacted about 100 potential strategic and financial acquirors, (iii) developed and implemented a strategy to split ADT into two component parts to enable a sale either of the whole or of component parts of ADT and (iv) consummated, through several bankruptcy section 363 sales, a sale of one part of ADT to AmericDisc (a Canadian strategic buyer) and a sale of the other part of ADT to a financial buyer.

The sale process was complex and competitive. As a result of the highly successful sale process, values at ADT were maximized.